The west division of cecchetti corporation had average operating assets of $638,000 and net operating income of $78,000 in august. the minimum required rate of return for performance evaluation purposes is 14%. what was the west division's minimum required return in august

Answer

Minimum required return in august will be $59320

Explanation:

We have given the west division of Cecchetti Corporation had average operating assets of $638,000

Net operating income = $78000

Minimum required rate of return = 14 % = 0.14

We have to find the minimum required return in august

Minimum required return is given by

Minimum required return = Average assets × minimum return rate

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

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